Question

Is there a formula for SID or PID?

Is there a formula for SID or PID?

Homework Answers

Answer #1

ANSWER:

The short answer is no as we need to understand what is sid or pid that is sid means supplier induced demand or provider induced demand as in the healthcare system , it is defined by the difference of knowledge between the provider ( doctor) and the reciever ( patient). patients rely on doctors knowledge for there well being while the doctors want to maximize their utility function to the fullest as the utility depends on the income, patients well being and the leisure as the possibility of sid depends upon two factors:

1. assymetric knowledge

2. financial motives

and therefore these two characterstics of sid gives the possibility of sid but do not guarantee the existence and therefore there is no particular formula in obtaining the sid.

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